The Metal Machinery Company is in talks with British Nuclear Fuels about the one-off recycling project at the Berkeley centre near Bristol.
The Government closed the site in 1989 as part of a privatisation process and has a policy of recycling as much of the metal as possible.
Leeds-based Metal Machinery was formed in late March by 19 workers made redundant when Meltog went into liquidation a few weeks earlier.
And the new firm is hopeful it will be able to fulfil the contract Meltog had to recycle the potentially contaminated remnants of the Berkeley site.
Production director Richard Lee told MRW: We are talking to British Nuclear Fuels this week about designing and building them a specific machine to help decommission the Berkeley site.
It is a specialist job as the shredding has to take place underwater in case of any contamination from the metal. The machine will have to be hydraulic rather than electric, and will be operated from a platform using 16-foot long rods.